The semiconductor industry is undergoing rapid transformation. Gartner estimates that the global semiconductor revenue will reach $624 billion in 2024. This driven by many factors, among them being the clear improvement in semiconductor supply chain operations & management. Resilient management of supply chain is vital to ensure efficient and cost- effective semiconductor operations.
Presently, Taiwan is responsible 60% of the world’s supply of semiconductors and 90% of most advanced types of semiconductors, making it the dominant producer in the industry by a landslide. Taiwan Semiconductor Manufacturing Corporation (TSMC) has a 54% share in the global market and supplies to most of the world’s biggest companies such as Apple, Qualcomm and Nvidia. The rest of the world is highly reliant on Taiwan’s supply to ensure manufacturing operations are kept running, given that Europe & USA’s global market share only amounts to 21%. The current demographics of the semiconductor industry shows that even a small disruption in the network can cause major supply issues. This was emphasized by China’s hostility towards Taiwan in early 2023, causing supply cuts and drastic price fluctuations in the market.
The global value chain in which semiconductors are produced starts with the fabrication process which is contracted out to foundries in South Korea, Japan, or Taiwan. The chips made in these foundries are shipped to companies in China so they may be assembled, tested, and packed into various electronic devices & equipment. Supply chain networks such as these are globally beneficial world by encouraging specialization, reduction in expense, and eventually boosting revenue. Hence why, Chinese chip suppliers, Nikkei Asia and other state-backed entities have expressed their intent to invest an estimated 50 billion yuan ($7.26 billion) in strengthening the domestic supply chains.
With China now expanding their semiconductor operations to Malaysia, the country now is welcoming more investment in the semiconductor industry. Recognised as one of the primary semiconductor manufacturers in the global value chain, 7% of global semiconductors flow through Malaysia. Grab your seat at Trueventus’ Supply Chain Management for Semiconductor Industry to learn from and network with the leading experts in the semiconductor field and how to optimize your supply chains for maximum efficiency and profits. With semiconductor operations branching out into previously unreachable parts of the world, there are abundance of opportunities for every one down the supply chain line to seize their share of the profits.